FISCAL NOTE

Date Requested: January 29, 2019
Time Requested: 10:53 AM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2074 Introduced SB1
CBD Subject: Education (Higher), Education (K12)


FUND(S):

0596

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Senate Bill 1,if enacted, would increase the quality of the state’s workforce by increasing access to career education through the establishment of Advanced Career Education (ACE) programs and the WV Invests Grant Program.
    The estimated costs associated with the WV Invests Grant Program are approximately $7.5 million.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 7,500,000 7,500,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 7,500,000 7,500,000
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    To determine the estimated costs, unmet need was calculated for students attending a community and technical college during the 2016-2017 and 2017-2018 academic years. The calculations were based only on students attending in the fall and/or the spring semesters.
    
    Students included in the estimates meet the following criteria:
    
    - They were considered in-state students and paid in-state tuition and
     fees.
    - They were not high school students pursuing dual credit.
    - They have attempted at least 6 credits in a semester.
    - They were pursuing an associate degree or a certificate.
    - They have no prior credentials within the state.
    - Returning or continuing students had a cumulative college GPA of 2.0
     or above.
    - They have completed FAFSA for the given academic year.
    - They have unmet need based on tuition and financial aid award. Unmet
     need was calculated as the difference between the estimated student
     tuition less any federal and state financial aid.
    
    We estimate 20% increase in unmet need for WV Invests Grant due to new students entering the system. Tennessee and Oregon estimated 20% growth in enrollment when tuition assistance becomes available to community and technical college students.
    
    Monitoring costs are associated with managing the scholarship and servicing the program participants. These costs include monitoring participants’ eligibility for initial enrollment and renewal, maintaining residency requirements, etc.
    
    The cost for one year is estimated based on the number of students being served in that year only. It is estimated that about 5,000 students will require services, with a cost of approximately $100,000 a year. This estimate is based on the current cost of servicing students who participate in current financial aid programs.
    
    The inclusion of any regionally accredited, two-year institution that provides workforce development and academic transfer programs creates a potential future scenario where these cost projections could increase. None of the for-profit two-year colleges that currently operate in West Virginia would be immediately eligible for the WV Invests Grant; however, if they were to become regionally accredited in the future, they would be eligible. There is no stated limit on the maximum amount colleges could be reimbursed, and with no control over what private institutions may charge for tuition, the potential for substantial increases in cost is possible.
    



Memorandum


    



    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu